Payment of Wages Upon Termination Instructions
On 4/6/01 departments were notified and instructions were provided to comply with this new law regarding separating employees.
There seems to be some confusion regarding employees with appointment end dates. Here are the requirements of the new law as it applies to resignation with notice or appointment end dates.
Voluntary resignation with 72 hour notice - If an employee resigns giving at least 72 hours notice or has an appointment end date; the University must pay the employee all final wages on their last day of employment.
Since this law is new and the procedures are subject to change, we need the department's assistance to ensure we are complying with the new law.
Departments' Responsibilities
Upon receipt of notice or knowledge of appointment end date:
- Calculate any additional accrual of vacation to be included in payment of TRM.
- Calculate wages payable as appropriate.
- Report outstanding vacation (VAC) usage on an EDLR. Do not report REG pay.
- Submit a Separation Check Request to payroll.
- The only months this will not be required is when the actual payday is on or before the employees pay period end date.
- Process a separation bundle in PPS.
- Change all appointment time codes to N. (Positive time with no time rosters generated).
- Submit the separation IDOC to Payroll.
- Designated departmental representative picks up employees final paycheck.
- Hand the employee their separation paper check on their last day of work.
- Do NOT report any time included on the Separation Check Request form.
- Verify vacation balance after employees normal pay cycle has computed.
- Adjust vacation accrual as needed to zero out any remaining balance.
Payroll's Responsibilities
- If the Separation Check Request is received before the Separation PAN, payroll staff has been instructed to change all time codes to N.
- Payroll will change all separating employees pay dispositions so that a paper check will be issued and distributed to the Payroll Division rather than the departments.
- Payroll will be working closely with departments on any checks issued after the employees separation date to determine what action needs to be taken.
